Boat And Jet Ski Trailer Loan Options
Access the leading finance for new or used boat trailers
Financing a boat trailer in Australia is similar to financing any other type of vehicle or equipment. However, not all lenders will finance boat trailers, and some will only finance newer models. Compare the leading finance options for new or pre-owned boat trailers.
Is there a difference between new or used boat trailer loan?
There is a difference between securing loans for new versus used trailers. New trailers often receive favourable financing rates from lenders, thanks in part to the security that comes with potential new warranties. When it comes to used trailers, a key point of difference is the inspection process and accessed value. For private sales, an inspection is generally a prerequisite to obtaining a loan, as it assures the lender of the trailer’s condition. In the case of dealer-sold trailers, this step may be unnecessary, as dealers typically perform inspections before placing trailers on the market, ensuring they meet certain standards.
What impact does the trailer age have on the loan?
Boat trailer financing operates on the premise of a secured loan, with the trailer itself serving as collateral. The amount that can be borrowed is dependant upon the appraised value of the trailer, which factors in depreciation. Lenders typically have stringent guidelines regarding the age of the trailer they are willing to finance, setting various age thresholds based on their risk assessment policies.
For older boat trailers, options become limited. In such cases, borrowers may have to resort to accessing an unsecured personal loan, which usually has a cap of around $200,000.
What is the eligibility criteria for a trailer loan?
The eligibility criteria for a boat trailer loan shouldn’t be any different than that of any other finance. Typically its a combination of the below:
Must have a credit score above 550
Must be employed and not currently in probation
Must be at least 18 years old
Must be able to provide bank statements (3 mths) & 2 payslips
Must have a drivers licence or passport
Must be an Australian Citizen or Permanent Resident
What is the difference in rate between a used and new boat trailer?
Interest rates are determined by the value of the transaction and the customer’s credit profile. This can range from lender to lender. With many specialist marine finance lenders, slighly increasing the rate based on the trailer age and condition.
Other traditional lenders that don’t specialise in marine finance, especially for boat trailer loans may add a higher percentage. Their range can be anywhere from 1% to 2% plus. Higher rates are typically allocated to items a few years old.
In general, the better your borrowing capacity and credit profile along with a well kept trailer, the better the rate you will receive.
Is it easy to buy a boat trailer privately with a loan?
If you have found a trailer you are happy with, purchasing it shouldn’t be an issue if it’s in good working order and has a positive inspection. Thousands of boat trailers are bought privately each year with no issue.
For such transactions, lenders typically require an independent inspection to ensure the trailer’s soundness. This not only protects your interests by preventing the purchase of a substandard trailer but also assures the lender of it’s value.
If approval for a boat trailer loan proves challenging, you still have the option of acquiring it through a personal loan, which is a viable alternative (and commonly done).
Get Your Personalised Boat Trailer Rate.
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Applying For Boat Trailer Finance
Can I get a boat loan trailer loan with no credit check?
There are options for applying for a no credit check trailer loan. This can include a low doc loan or a soft credit pull which does not impact your credit score and will give you a strong idea if you would be approved or not.
Who provides the best boat trailer loan interest rates?
Depending on the age of the trailer and condition, typically, the older the trailer, the smaller the options available. Traditional banks and many other prefer new or close to new trailers for finance. Specialist marine finance lenders provide more flexibility in terms of rate and trailer age. In cases where a lender won’t approve a older trailer, a personal loan may be the best option.
Marinewise works with experienced experts in the marine finance space and can help provide the best options to ensure the lowest rate and approval for any type of boat trailer.
What is the longest term for a boat trailer loan?
Boat trailer loan terms are typically between 1 – 5 years.
Can you get boat trailer finance with bad credit?
Just like any other type of bad credit finance, there are options. There are different lenders that will assist borrowers with less than perfect credit. For those looking for a bad credit boat trailer loan, expect higher interest rates and a possible deposit.